- Ginni Rometty
Company: International Business Machines Inc.
Tenure: January 2012 to present
YTD share price change: -8.0%
The majority of America’s biggest technology companies have reported huge revenue growth in recent years and have seen their stock prices soar, but not IBM (NYSE: IBM).
Warren Buffett, once a staunch supporter of CEO Ginni Rometty’s turnaround plan, has sold a large portion of his stake in the company. Buffett’s decision seems wise.
Rometty has constantly pushed the success of IBM’s cloud and artificial intelligence initiatives, often under the brand name Watson (named after IBM founder Thomas Watson). IBM has spent so much on marketing that the Watson brand is nearly as visible as IBM itself.
Although IBM beat Wall Street estimates on earnings per share and revenue in its most recent quarter, revenue declined for the 22nd straight reporting period. Almost every IBM division continues to falter, and Watson has been no savior.